Assuming market health stays good, I will be taking swing trades this week. I discussed the current Market Health situation here.

I am focusing on trading contraction breakouts. Some of these contraction breakouts are occurring from larger cup and handle patterns due to the recent price decline and then rally back toward the highs in the many stocks. I am using these strategies to trade the stocks below.

Here is an example of what I am looking for. This trade is currently underway and is from last’s week list (from the Canadian list). Symbol: GRA.TO. Read the articles above for more examples and strategy specifications.

Stock Swing Trade Watchlist for Week of Oct. 25 (and possibly beyond)

This is NOT a buy list. It is simply a list of stocks that are forming contraction patterns. I then watch these stocks to see if they form valid entries. Also, since I can’t trade all the stocks on the list (if they were to all trigger), I pick the ones I like best from the list and place orders in those.

An * denotes stocks that could set up and trigger within the week. Go through the list daily and write down which stocks are close to setting up as time goes on. Check on these ones frequently..or write down a small list of stocks you like the best from the list and watch them like a hawk. ** denotes stocks that I find of high interest, often because of the potential for a large profit target.

There are lots of companies reporting earnings in the next month! Be ware of the earnings date for any trades taken.

US Swing Trading Stocks Watchlist

129 stock met the scan criteria on the right. There were 113 last week.

TROX** – earnings this week
PDCE – still needs to consolidate
WIT – Move back up and consolidate. Gappy.
EVRI – tight pattern in Oct within multi-month consolidation.
CMRE – Dropping contraction/Wedge. Earnings soon.

NTAP*
CBRE* – breaking out
LTHM*
AQUA* – broke out recently
SIG* – consolidating now
GNRC – little bit bigger pattern. Consolidating now.
TDC*
ISEE** – needs to form a consolidation near the highs.
EVC**
HMHC*
CELH – has to move back up quickly
VRTV – broke out last week

Canadian Swing Trading Stocks Watchlist

97 stocks met the scan criteria on the right. 96 last week.

UNS.TO* – more a range than a contraction, but nice recent consolidation. Conservative target.
NOT.V**
TMC.V*
TOU.TO* – Contracting less than 1 month.
PRYM.V – Big pattern. Needs to tighten up before I would consider it.
ECN.TO* – Pattern occurs below weird earnings spike then drop back August. Grindy movement.
HME.V**
CUR.V** – Broke out last week but still near breakout area.
CYP.V* – half cup pattern. On the bigger side. Dropping away from consolidation. Needs to rally soon abvoe consolidation or it will need to reset.

From last week’s list, GRA.TO broke out and has had a nice run.

BY Cory Mitchell, CMT

Want to learn how to scan for and trade these patterns? Know which ones to trade and which ones to leave alone? Learn this strategy and others in the Complete Method Stock Swing Trading Course. 

Disclaimer: Nothing in this article is personal investment advice, or advice to buy or sell anything. Trading is risky and can result in substantial losses, even more than deposited if using leverage.